KUALA LUMPUR: Malaysia's top court ordered former prime minister Najib Razak to begin a 12-year prison sentence on Tuesday after rejecting his appeal against a conviction on charges related to a multi-billion dollar graft scandal at state fund 1Malaysia Development Berhad (1MDB).
The following are details of the scandal and cases brought against him:
WHAT IS 1MDB?
1MDB was a sovereign fund set up in 2009 with the help of Malaysian financier Jho Low to promote economic development.
Najib, who was prime minister from 2009 to 2018, co-founded 1MDB and chaired its advisory board until 2016.
HOW DID BILLIONS GO MISSING?
1MDB raised billions of dollars in bonds for use in investment projects and joint ventures between 2009 and 2013.
Conducting its largest ever kleptocracy investigation, the U.S. Department of Justice (DoJ) said $4.5 billion was diverted to offshore bank accounts and shell companies, many linked to Low. Malaysian authorities say billions more remain unaccounted for.
The siphoned funds were used to buy luxury assets and real estate for Low and his associates, including a private jet, a superyacht, hotels, jewelry, and to finance the 2013 Hollywood film "The Wolf of Wall Street", U.S. lawsuits have said.
Low, a fugitive, has been charged in Malaysia and the United States over his central role in the case. He denies wrongdoing.
His whereabouts are unknown. Malaysia has said he is in China, but Beijing denies it.
Najib was not named by the DoJ, but was alluded to in the investigation as "Malaysian Official 1", according to Malaysian and U.S. sources.
WHAT ARE THE CASES AGAINST NAJIB?
Malaysian authorities say Najib illegally received more than $1 billion traceable to 1MDB.
A person described in U.S. lawsuits as "Malaysian Official 1" allegedly received more than $1 billion in 1MDB funds, some of which was used to buy jewelry for the person's wife.
The lawsuits said the person received $681 million shortly before Malaysia's 2013 election, when the Barisan Nasional coalition led by Najib's United Malays National Organisation held onto power while losing the popular vote.
Najib, voted out in a 2018 election amid public anger over the scandal, is facing 42 criminal charges over losses at 1MDB and other state entities. If convicted, he could face decades in prison as well as hefty fines.
In July 2020, in the first of five trials, he was sentenced to 12 years in prison and a 210 million ringgit ($46.94 million) fine after being found guilty of criminal breach of trust, abuse of power, and money laundering for illegally receiving about $10 million from SRC International, a former 1MDB unit.
The verdict was upheld by an appellate court last year, and on Tuesday the Federal Court ruled against Najib's final appeal.
Other trials he faces involve funds at 1MDB and other government bodies, as well as allegations of audit tampering. He has pleaded not guilty to all charges.
WHAT ARE THE STATUS OF THESE CASES?
Despite the scandal, Najib has retained some of his former popularity and remains influential within UMNO, which is now back in power.
He remains on trial in the four other cases.
Najib has said he was misled by Low and other 1MDB officials into believing the funds banked into his accounts were donated by the Saudi royal family.
HOW ARE AUTHORITIES INVESTIGATING 1MDB?
At least six countries, including Singapore and Switzerland, have launched financial mismanagement and criminal investigations into 1MDB dealings, in a global probe that has implicated financial institutions and high-ranking officials worldwide.
In 2020, U.S. firm Goldman Sachs agreed to pay more than $5 billion, including a record $2.9 billion in the United States, to settle investigations into its role in underwriting $6.5 billion in bond sales for 1MDB.
In April, former Goldman Sachs banker Roger Ng, a Malaysian, was convicted by a U.S. court of conspiring to violate an anti-corruption law and money laundering. He is the first, and likely only, person to face trial in the United States over the scheme.
Reuters
Tue Aug 23 2022
Former Malaysian Prime Minister Najib Razak walks out alongside his children from the Federal Court during a court break earlier today, in Putrajaya, Malaysia August 23, 2022. - REUTERS
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.